With the widespread use of the internet and growth of computing systems, one area that has not achieved significant development is environmental rating techniques and systems. These techniques and systems have failed to get individuals, businesses, nonprofit organizations, and governmental entities to work together to effectively combat current environmental issues.
Currently, the earth is facing many environmental issues such as climate change, air pollution, ozone depletion, water pollution, deforestation, desertification, habitat destruction, toxic chemicals, natural resource extraction, light and noise pollution, acid rain, medical waste, and littering and landfills. Climate change and global warming are among the top serious environmental issues. Global warming is caused by an increase in the concentrations of greenhouse gases in the atmosphere and refers to the ongoing and recent rise in average global temperature near the Earth's surface, which in turn is causing a change in climate patterns. Significant changes in climate measurements, including temperature, wind patterns, and precipitation, over several decades or longer is called climate change. The scientific literature has noted that there are substantial and far-reaching risks and implications of climate change on environment and public health.
With the growing concerns over environmental issues, such as global warming and resource depletion, the type and number of certifications and green product standards have grown, and many green certifications developed for homes, schools, manufacturers, restaurants, hotels, cleaning companies, and so on have been expanded to include a wider range of environmental issues to determine the impact of their products in terms of manufacture, use, and reuse. A green certification provides confirmation that the goods or services meet mandatory or voluntary standards and offer an environmental benefit. The International Organization for Standardization (ISO) has developed three types of environmental product claims: type I environmental labels based on ISO 14024, type II self-declared environmental claims based on ISO 14021, and type III environmental product declarations based on ISO 14025. The type III environmental product declaration is a standardized (ISO 14025) and life cycle assessment-based tool. To be published, type III environmental declarations require an independent agency, called a program operator, to supervise the full development process of the environmental product declaration. Environmental product declaration is a report that focuses on the ways in which a product or service affects the environment throughout its life cycle. This declaration is an internationally accepted, independently verified, registered, and published document.
Harmful atmospheric emissions; the use of raw materials, water, and energy; and waste generation during building demolition, construction, repurposing, occupancy, and renovation have caused extensive impacts on the environment. To mitigate the impact of building on the natural environment, sustainability rating systems, green building standards, and certifications have been developed internationally, including LEED and Energy Star in the United States; BREEAM in the United Kingdom; Green Mark in Singapore; BEAM Plus in Hong Kong; and Green Star, NABERS Energy, and NABERS Water in Australia.
Within the banking community there is also an increase in the incorporation of environmental and social factors into credit scoring systems beyond normal financial viability. Financial institutions have created many green financial products such as green insurance, green securities, and green loans to satisfy market demand for financial products that support sustainable economic development. Although environmental criteria are incorporated into credit risk assessment methods, these environmental factors are limited, and the lending is dependent on environmental criteria for the planned use of funds.
Although there are currently hundreds of international green product certifications, including about 100 certifications in the United States, they have failed to get individuals, businesses, nonprofit organizations and governmental entities to work together to effectively combat current environmental issues. In addition, their effectiveness in generating a significant increase in individual participation in environmental activities is limited.
The efforts of individuals, businesses, nonprofit organizations, and governmental entities to solve current environmental issues, such as climate change, must be increased. For example, to quickly and effectively address current climate change and global warming issues, all entities must significantly reduce the amount of greenhouse gas emissions (heat-trapping emissions) they are putting into the atmosphere. The total amount of greenhouse gases expressed in equivalent tons of carbon dioxide (CO2) that is produced to directly and indirectly support human activities is commonly known as “carbon footprint.”
Implementing most solutions requires commitment and responsibility from individuals, businesses, nonprofits, and governmental entities to work together to combat the current environmental issues. Therefore, there is a substantial need for a dedicated comprehensive environmental credit score to encourage individuals, businesses, nonprofits, and governmental entities to cooperate and actively engage in the environmental activities such as recycling; purchasing environmentally friendly products and services; and using renewable electricity, electric vehicles, and other environmentally friendly products and services.